Walmart is reassuring customers that its digital price labels will not be used to charge different shoppers different amounts, as the US retailer expands the technology across its stores.
John Furner, the company’s chief executive, said Walmart would not use personal information such as income, shopping history or a customer’s willingness to pay when setting prices.
“We don’t set different prices based on who you are or the time of day, and we won’t,” Mr Furner said. “Whether you’re buying groceries or electronics on a hot afternoon or in a sudden rush for an item, it’s never a reason to charge you more.”
The pledge comes as shoppers, consumer advocates and lawmakers raise concerns about the wider introduction of electronic shelf labels in US shops. The systems allow prices to be changed centrally and instantly, removing the need for staff to replace paper tags by hand.
Mr Furner said Walmart’s artificial intelligence shopping assistant, Sparky, would follow the same policy. The bot would not be used to increase an individual customer’s price or conceal lower-priced products that met their needs, he said.
He said such practices would conflict with Walmart’s “every day low prices” business model. Prices can still change, he added, when the retailer is able to pass on savings or when the cost of buying or transporting an item increases.
Walmart said in March that 2,300 of its US locations were already using digital shelf technology and that it expected the system to be introduced across the chain within the following year.
The retailer has said the electronic labels help it change prices consistently and ensure they match the amount charged at checkout. They also reduce the time workers spend replacing paper labels and lower labour costs.
The Federal Trade Commission last month warned companies that personalised pricing could breach consumer protection laws. The agency said it could not ban the practice in every circumstance, but told businesses they must disclose how personal information is used to set prices.
